Largo files NI 43-101 technical report for Maracas Menchen mine, Brazil

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Largo Inc. [LGO-TSX; NASDAQ] has filed its NI 43-101 technical report for the Campbell pit and prefeasibility study for the GAN and NAN deposits, dated December 16, 2021, in respect of the company’s Maracas Menchen mine in Brazil. The Technical Report supports the disclosure made by the Company in its press release dated November 3, 2021.

Enhanced Profitability and Market Competitiveness: The phased operational approach outlined in the Technical Report is expected to unlock the ability to allocate operating costs between vanadium pentoxide (V2O5) and titanium dioxide (TiO2) in a manner that is expected to drive increased market competitiveness

Technical Report Indicates $2.8 Billion Pre-Tax / $2.0 Billion After-Tax NPV7% and $5.8 Billion Pre-Tax / $4.2 Billion After-Tax Life of Mine Cash Flow: The materially enhanced company profitability forecasted by the Technical Report is driven by expanded V2O5 production and incremental cash flows generated by the production and sale of TiO2 pigment as a co-product

Updated Mine Life of 20 Years: Total operating mine life for the Maracas Menchen Mine of 20 years following extensive drilling and engineering work performed at the Campbell Pit, and at the Novo Amparo Norte and Gulcari A Norte deposits, in addition to the inclusion of TiO2.

Expansion of Vanadium Operations: Current nameplate production capacity of 13,200 tonnes per annum expected to increase to an approximate average of 15,900 tonnes per annum in 2032

Paulo Misk, President and CEO stated: “The phased operational scenarios outlined in our Technical Report are expected to further support the optimization of the Maracas Menchen Mine and unlock an opportunity to deliver significantly enhanced cash flow and drive increased market competitiveness of the company’s products. We believe these results demonstrate a clear and profitable path forward for Largo, one that is aligned with our strategy and is expected to create significant value for our shareholders.”

Largo has a long and successful history as one of the world’s preferred vanadium companies through the supply of its VPURETM and VPURE+TM products, which are sourced from one of the world’s highest-grade vanadium deposits at the company’s Maracas Menchen Mine in Brazil.

Following the acquisition of vanadium redox flow battery technology in 2020, Largo is undergoing a strategic transformation to vertically integrate its world-class vanadium products with its VCHARGE vanadium battery technology to support the planet’s on-going transition to renewable energy and a low carbon future.

Largo’s VCHARGE batteries are uniquely capable of supporting reliability and grid stability as electricity systems move away from fossil-fuel generation. VCHARGE batteries are cost effective due to a variety of innovations, enabling an efficient, safe and ESG-aligned long duration solution that is fully recyclable at the end of its 25+ year lifespan.


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